Standard Autoparts Inc. issued $100,000 of 7%, 10-year bonds at a price of 87 on January 31, 2014. The market interest rate at the date of issuance was 9%, and the standard bonds pay interest semi-annually.

1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. Use Exhibit 9-3 , page 431 , as a guide, and round amounts to the nearest dollar.

2. Record Standard's issuance of the bonds on January 31, 2014, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2014. Explanations are not required.